Joe Weisenthal

It occurs to me, well, I actually don't, what is the BOE's mandate?

Of course, in the U.S., it's the famous dual mandate.

My understanding is the ECB is a more ostensibly singularly price mandate.

What is the BOE's mandate?

In central London where the tourists go, things look plenty active to me.

Yeah, just intuitively, you mentioned the supply side and like much of the sort of developed Western world, there is the, okay, there's the struggles of the industrial sector in large part due to competition with China.

There is the fact that if you're in a sector that's not AI, you're probably not getting a ton of investment.

London is, London specifically at least, a decent AI hub.

Okay, so we've established that the economy is somewhat weak.

But you voted to hold rates.

So what is it about the inflationary environment such that this weakness does not call for cuts right now?

You know, Kirsten, I have a theoretical question I've been meaning to ask someone about this.

When the inflation started to explode in the immediate wake of the pandemic, really globally, one of the stories that people like to tell was that monetary policy would have weaker teeth or be less effective in the US, in part because so many American households are on 30-year fixed mortgages.

unlike in much of the other Western world or the Anglosphere world, where a lot of people's mortgages reset regularly.

Did that actually play out in practice?

Did BOE decisions transmit quicker to the real economy because fewer households see their mortgage bill reset on a regular basis?

Today it's dominated by two and five year.

Well, actually, when I think about the term supply side or supply side shocks, I think of

there are sort of two things, right?

There's a supply side shock.